Clarification on certain issues (sale by government departments to unregistered person; leviability of penalty under section 73(11) of the MGST Act; rate of tax in case of debit notes / credit notes issued under section 142(2) of the MGST Act: applicability of notification No. 50/2018-State Tax; valuation methodology in case of TCS under Income Tax Act and definition of owner of goods) related to GST.

Maharashtra Tax Circular: GST on Used Goods Sales, Penalties Clarified, TCS Included in Valuation, Section 51 TDS Rules Explained.

The circular from the Commissioner of State Tax, Maharashtra, clarifies several GST-related issues. It states that the sale of used vehicles, seized goods, and scrap by government entities to unregistered persons is taxable, requiring the entities to register under GST. Penalties under section 73(11) of the MGST Act are not applicable for late filing of GSTR-3B if tax is already paid, though a general penalty under section 125 may apply. For debit/credit notes under section 142(2), the GST rate applies post-implementation. Section 51 TDS provisions apply to government bodies with significant government equity. GST valuation includes TCS under the Income Tax Act, and the owner of goods is determined by accompanying documents.